The Hancock-Henderson Quill, Inc.

Bank Of Stronghurst Reports Profits At Stockholders Meeting

Since its beginning in 1946, the Bank of Stronghurst has been serving the area, and after 63 years, stockholders gathered for their annual stockholders meeting yet again on Tuesday, January 27, 2009, at Country Fun Restaurant, rural Biggsville.

Approximately 72 stockholders and guests attended the 12:30 p.m. luncheon buffet and meeting.

Charles E. Vaughn, President and C.E.O. led stockholders and guests in the Pledge of Allegiance.

Invocation was given by Director, Kenneth Nimrick.

At approximately 1:30 p.m. the meeting was opened by George Hennenfent, Chairman. He introduced the other officers of the meeting.

Robert Dillon and Mitchell Cortelyou were judges.

Marlene Knutstrom was Secretary.

The chairman called on Rodney Brake, Executive Vice President and Cashier, for his financial report. He reported that while the economy and financial market were experiencing turmoil, the Bank of Stronghurst was able to report another profitable year.

He also said that the Bank of Stronghurst did not participate in the unsound underwriting or risky business practices that were the cause of the financial crisis.

Mr. Brake reported total assets at year-end were $68,564,191.14, which was an increase of $3,425,050.57 or 5.26%.

Total deposits increased from $53,331,333.87, in 2007 to $56,022,656.54 in 2008, which was an increase of $2,691,302.67 or 5.05%.

Mr. Brake discussed the reconciliation of capital accounts. With year-end capital of $11,682,653.98 and a capital-to-asset ratio of 17.02%, the bank remains in the top 10% of banks our size for capital strength.

He closed his report by stating that the financial markets and the economy continue to be unsettled.

The bank's strong capital position, continue conservative banking philosophy and loyal customers and stockholders should serve the bank well in these uncertain times.

Chairman Hennenfent then called on Jerry Keimig, Sr. Vice President and Farm Loan Officer, who reported on the bank's loan portfolio.

Mr. Keimig reported total loans in 2008 were $17.2 million.

Mr. Keimig went on to break the loans down by type.

He stated that we make all types of loans including agricultural, commercial and personal loans, as well as commercial, agricultural and individual real estate loans.

Mr. Keimig closed his report by stating the competition for loans continues to be very strong.

The Bank of Stronghurst has four locations and over 50 years of lending experience to serve the public. We will continue to work hard to serve our present customers and to attract new customers.

Each stockholder was given a copy of the minutes of last year's meeting. The chairman asked for a motion to approve the minutes.

The 2008 stockholder minutes were approved upon motion by Tom Edmonds, seconded by Bob Dillon and carried unanimously.

Judges for the meeting, Mitchell Cortelyou and Robert Dillon, reported 2,994 shares of stock represented in person and 1,909 shares represented by proxy, making a total of 4,903 shares represented.

Chairman George Hennenfent then declared a quorum present for the transaction of business.

Chairman Hennenfent called for Election of Directors for the coming year.

A motion was made by David Vancil and seconded by Richard Knutstrom that the present directors, namely Kenneth Nimrick, Sidney L. Dowell, Charles E. Neff, W. William Waddill, George Hennenfent, Rodney Brake, and Charles E. Vaughn, be nominated for the coming year and that a unanimous ballot be cast to elect the nominees.

The motion carried unanimously.

The directors for the coming year will be:

Kenneth Nimrick
Sidney L. Dowell
Charles E. Neff
W. William Waddill
George Hennenfent
Rodney Brake
Charles E. Vaughn

Chairman Hennenfent called on Marlene Knutstrom who conducted a drawing for door prizes and fresh floral arrangements.

Winners of the drawing were as folows:

Fresh Floral Centerpieces Madeline Dowell and Ila Anguish

2008 US Mint Proof Coins Sets Jane Weir and Margaret Vancil

Folding Stadium Chairs Pauline Oge and Wendell Covert

Tool Kits Judith McNeill and Debbie Smith

Gallon Thermos Jugs Carolyn Fry and Elma Hobby

Chairman Hennenfent asked for motion to adjourn meeting.

A motion was made by Bonnie Hensley and seconded by Erin Noble, to adjourn.

Motion carried unanimously and the 2009 meeting of the stockholders of Bank of Stronghurst was adjourned at 2:04 p.m.

Marlene D. Knutstrom

January 27, 2009

Directors from left front: Charles E. Neff, George Hennenfent (Chairman of the Board), Rodney Brake, back left, Kenneth Nimrick, Sidney L. Dowell, Charles E. Vaughn (CEO and President), and, W. William Waddill.